HCL ahead in infrastructure outsourcing race

April 7, 2009

HCL has won two major infrastructure outsourcing contracts straight in a row, first $350 Million with Reader’s Digest and now $100 Million with Xerox.

HCL has been increasing their core competency on remote infrastructure outsourcing for some time and it is paying them now. HCL’s Infrastructure Services Division adopted the asset light model (Cosourcing) of infrastructure outsourcing in which clients own the IT infrastructure architecture, security, policy issues, etc., and HCL takes the responsibility of managing day-to-day operations of the entire IT infrastructure. The cosourcing strategy combined with multi-country delivery center strategy paying them in winding big multi-year outsourcing deals.

Remote IT infrastructure management outsourcing, RIMO is not like regular ITO or BPO. ITO and BPO companies can be started with minimal up-front capital investments. However, RIMO needs high capital investment and it will take years for companies to see the profit. Due to this cost of entry for infrastructure outsourcing business is high, this created a huge opportunity for HCL, and their management team used it wisely to capture the growing RIMO market.

I am sure in the future HCL will win more contracts in the RIMO market space.


Comments

2 Responses to “HCL ahead in infrastructure outsourcing race”

  1. IT infrastructure will grow to $6 Billion on April 13th, 2009 8:56 pm

    I agree with you, IT infrastructure outsource will see a high growth in the next couple of years. Check out the article in Economic times

  2. Green Cloud Outsourcing | Outsource Portfolio on April 16th, 2009 9:12 pm

    [...] the future cloud computing . But for IT infrastructure management side of cloud computing I am sure HCL will get a bigger market share in the near future. Share and [...]

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